A Property Trust is traditionally set up to protect property so the offspring of a married couple inherit their share of the property in the event that the remaining partner after death remarries and consequently dies leaving the new partner to inherit the property.
These types of Property Trusts also currently provide protection from potentially expensive care costs, although, this will not be the case from 2016 onwards due to a new Government directive. This new directive is somewhat complicated and experts are still interpreting how the directive will be enforced. The current law states that local authorities can attempt to recoup monies from beneficiaries of these types of trusts at present, although, they don’t seem to pursue these funds for various reasons from 2016 this new directive gives them greater powers for trusts taken out after this date.
The local authority currently only pays toward care home fees when the assets are depleted to £23,250. From 2016 they will begin to pay towards these fees when an individual’s assets are no more than £118,000. And that no one person will pay more than £72,000 in care costs. This sounds like a good deal for the average person but it’s not quite that simple.
At present, if an individual’s assets are below £23,250, the local authority would step in and pay towards the costs on a sliding scale until the value of assets reaches £14,250. The amount then payable is equal to £36 per week.
When the new directive takes force, the amount payable by the local authority will increase on a sliding scale as the assets deplete to £17,500. The amount payable will be £402 per week toward the fees between these figures and will reduce accordingly.
Once the cap of £72,000 has been reached it is implied that no further care costs will be due but this is where it’s more complicated. The fees for care are paid thereafter but the fees for accommodation and food are not covered.
Funeral Planning Solutions offer expert advice and provision of this ‘end of life solution. Call us on 0800 1700 345 or ‘Request a Call Back‘ at a time to suit you.